The planning commission wants construction to go forward, since that means additional jobs for the local community, but it also
wants to be environmentally responsible. One member of the commission suggests that the developer relocate the toads. She describes the relocation process as follows: "The developer builds the shopping mall and agrees to create 10 acres of artificial toad habitat elsewhere." The builder will agree with the proposed solution if ______________
the benefits of building the shopping center outweigh the costs including that of relocating the toads.
Explanation:
A cost benefit analysis is a decision process by which investor can "analyze decisions, systems or projects, or determine a value for intangibles. The model is built by identifying the benefits of an action as well as the associated costs, and subtracting the costs from benefits. When completed, a cost benefit analysis will yield concrete results that can be used to develop reasonable conclusions around the feasibility and/or advisability of a decision or situation."
The cost benefit analysis would be favorable to the builder if relocating the toads wouldn't be as expensive as building the shopping center.
Reference: Smartsheet. (2019). Cost Benefit Analysis: An Expert Guide. [online]
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